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Complex Labor Regulations Raise the Stakes for Organizations

Recent developments illustrate how important it is to be prepared should a wage and hour challenge be brought against your organization.

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Investigations, litigation, and wage recovery focused on wage and hour violations are showing no signs of abating. Since 2009, the Department of Labor Wage and Hour Division has added 1.5 million workers, with $1.3 billion in back wages recovered. Changes to the Affordable Care Act (ACA), along with the proposed changes to overtime regulations, have added new layers of complexity to managing labor compliance. It’s imperative that organizations take comprehensive, proactive steps to develop compliance strategies and tools to protect themselves from challenges that can occur at the federal, state, and local levels.

Fair Labor Standards Act (FLSA) cases are expected to rise for many reasons. Federal standards for class certification have tightened, increasing the potential for denial or decertification, in turn driving up the filing of lawsuits. Movements across the country to raise the minimum wage have led to an increased focus on wage and hour laws. And proposed new regulations that would extend overtime protections to millions of previously exempt white collar workers have increased employee awareness of wage and hour policies and practices.

With this added complexity and increased focus on enforcement, employers need to protect themselves from potentially significant penalties for noncompliance with wage and hour regulations.